When you want a dog that is obedient and under control, it`s straight to obedience training. If you want additional bulging eyes, blue tongue and permanent bald patch around its collar, use a choke chain. The reaction, because the chain causes pain from a short sharp jerk, is for the dog to pull even more and, one presumes, causes damage beyond by not altering its behaviour.
It now seems that the economy is getting a form of trainer via the Office for Budget Responsibility (OBR). The committee of three, accountable to Parliament, will have its first outing of fiscal forecasting in time for the emergency budget. Net fiscal tightening and loosening appears to be OBR’s objectives in supporting the Treasury to achieve its goals as determined through the balance sheets therefore the emergency budget is likely to set out pay and savings measures, pension ages, tax and other measures to boost business in Britain. OBR recommendations will be given as to whether policies will achieve the Chancellor’s mandate with assessments on public finance, indicating longer term sustainability, following later.
Businesses and consumers are looking for confidence, and the financial markets want everyone looking at them, but for the right reasons because just as over confidence can create problems so too can over-correction. Amongst macro-economic theory it is suggested that tight fiscal policy, supportive monetary policy and financial regulation would all give balance for recovery. But how will this done? Trained to heel, or choke chain – Which will be better value for this new economic model?
(Image credit: Mo Kaiwen Article credit: Copyright SUF)